Plans to build what Europe’s biggest battery plant in Sweden has received financial backing from an EU bank.
The European Investment Bank (EIB) has approved a loan of up to €52.5 million (£46.7m) for Northvolt’s factory in Vasteras for the manufacturing of lithium-ion batteries.
Two former Tesla executives unveiled the plan for the $4 billion (£3.6bn) facility last July, looking to rival the scale of Tesla’s Gigafactory in Nevada, eventually targeting a production of 32GWh worth of battery capacity annually.
The batteries are targeted for use in transport, stationary storage and industrial and consumer applications.
The company expects to begin construction of its demonstration line in the coming months, employing between 300 to 400 people.
Ambroise Fayolle, EIB Vice President said: “Europe is currently lagging behind when it comes to battery manufacturing and this highly innovative and strategic project deserves European backing to fill that gap.”